The Strategy-Driven Supply Chain: Integrating Strategy, Finance and Supply Chain for a Competitive Edge

by Bram DeSmet

Overview

Different strategies lead to different supply chains, and a lack of strategic choices leads to a blurred focus. This book introduces the concept of the 'strategy-driven supply chain', which changes the role of supply chain from operational-tactical to tactical-strategic.

Building on the fundamentals of the author's previous bestselling book, Supply Chain Strategy and Financial Metrics, this new work defines a mission and purpose for supply chain management which puts supply chain at the heart of the triangle of service, cost and cash. The Strategy-Driven Supply Chain explains the need for integrated value planning and execution as the next step beyond S&OP and IBP and how to use a strategy-driven scorecard with a focus on Return on Capital Employed (ROCE) as the overall value metric.

The Strategy-Driven Supply Chain includes numerous tools to put these ideas into action, including a method to analyse financial metrics and compare them to key competitors, and exercises to define an organization's strategic choices (or lack thereof). It also features real-life examples of how to use the supply chain triangle to engage sales, finance and operations and case studies that illustrate the impact of strategy on the supply chain and financial metrics. This practical guide outlines a seven-step approach to integrating the people, process, tooling and analytics aspects of the change journey to the strategy-driven supply chain.

Product Details

ISBN-13:	9781398600454
Publisher:	Kogan Page, Ltd.
Publication date:	05/25/2021
Edition description:	2nd ed.
Pages:	320
Product dimensions:	6.14(w) x 9.25(h) x 0.71(d)

About the Author

Dr Bram DeSmet is the CEO of Solventure where he helps global production and retail organizations in the domain of Strategy, Supply Chain and Operations. He is a Professor in Operations & Supply Chain Management at Vlerick Business School, Belgium and a visiting Professor at Peking University, China.

Table of Contents

** Chapter - 01: The Supply Chain Triangle of Service, Cost and Cash; ** Chapter - 02: Strategy in the Supply Chain Triangle; ** Chapter - 03: Strategy-Driven S&OP; ** Chapter - 04: The Strategy-Driven Enterprise; ** Chapter - 05: The Strategy-Driven Scorecard; ** Chapter - 06: Implementing the Strategy-Driven Enterprise; ** Chapter - 07: Appendix – Financial Templates – Inventory Management; ** Chapter - 08: Appendix – Financial Templates – The Cost of Inventory – Rent, Room, Risk

Editorial Reviews

"One supply chain doesn't fit all. Supply chains differ per company, but also often internally per product market combination. In this great book Bram DeSmet describes how companies should balance service, cost and cash to let their different supply chains create the best value for their varying customers. This book is a must-read for every decision maker in manufacturing, wholesale and retail."

CEO & Chief Trendwatcher Supply Chain Media Martijn Lofvers

"In our increasingly volatile, complex and uncertain world, supply chain as the strategic balancing act between service, cost and cash cannot be underestimated. Mastering a strategy-driven supply chain implies the understanding that in a successful business strategy the value proposition and the corresponding supply chain are inseparable."

CEO Poppies Bakery Group Patrick Reekmans

"The author, Bram Desmet has a strong appetite for seeing and revealing connections and pushing back boundaries. This is more than a supply chain and operations book but a business book that should be read by any CFO or CEO. This book helps provide a comprehensive methodology to connect business improvements and decisions with business performance and supply chain success."

Director Thought Leadership Institute of Business Eric Wilson CPF

"Bram Desmet has again proven to write a book that matters. Living in volatile times, overcoming our pandemic, digitalization and sustainability solutions in supply chain networks have become more than ever a must. Companies are now more connected than ever, new business models and ecosystems arise, whilst others disappear fast. Supply chain transformation is at the forefront now. Channel management, stock level management, all performance indicators need to be at the business management fingertips. In this book Bram Desmet describes in his unique practical style how cash, cost and service correlate, their influence on working capital and return on capital employed. All of this to be able to act swift and savvy in these connected times we live in. To be able to navigate in an optimal way in times now where also many new opportunities are at the horizon. Understanding and implementing his book can be the differentiator to be the successful business partner in the value chains you operate. It is a privilege to work with his insights and deep understanding, also for our customers and at our Brightlands Institute for Supply Chain Innovation."

Business Director Ton Geurts

"The Strategy Driven Supply Chain book is another masterpiece and must read for Business Executives and Supply Chain Professionals who want to integrate strategy, finance and supply chain in order to create a competitive edge for their organizations. The integrated value planning and execution model (IVP& E) has the potential to become the main business management process for companies in future."

Vice President Service Delivery EMEA & APAC at Gar Frank Vorrath

"The strategic potential of supply chains has been poorly understood and woefully neglected for far too long, something that has come back to haunt many businesses during these disruptive times. Bram Desmet's first book was therefore a breath of fresh air, providing clear, understandable guidance to business leaders on how to strategically design their supply chains. 'The Strategy Driven Supply Chain' expands on those concepts, providing further indispensable insights into the art and science of designing supply chains that operate as strategic weapons of value generation. A timely and essential book. Bravo."

Sean Culey (SCOR-P

"Supply Chain and Supply Chain Planning are key to value generation at Hero Group, as elegantly captured by the Supply Chain Triangle prominent in Bram's books. A highly recommended read for any finance or supply chain professional."

Witte van Cappellen

"I will keep this book at arm's length! In clear language, Bram proposes criteria and models that together form a guide for defining a supply chain strategy in line with the business strategy. It is no surprise that markets are in full evolution, accelerated lately by COVID. The right choices need to be made if you want your strategy to be successful. Bram's book also contains the good news that choosing is not losing, but on the contrary, the key to success."

Logistics Director Retail Partners Colruyt Group André Céron

"I will keep this book at arm's length! In clear language, Bram proposes criteria and models that together form a guide for defining a supply chain strategy in line with the business strategy. It is no surprise that markets are in full evolution, accelerated lately by COVID. The right choices need to be made if you want your strategy to be successful. Bram's book also contains the good news that choosing is not losing, but on the contrary, the key to success."

Logistics Director Retail Partners Colruyt Group André Céron

"The times when supply chain management could be considered as merely an operational activity focused on cost-reduction are long gone. By introducing the supply chain triangle, thought-leader Bram DeSmet provided supply chain professionals a highly relevant framework to (re)think their contribution. In this inspiring and highly practical book he takes it one step further by addressing the indispensable next question: how can we make our supply chain a true strategic asset?"

Nyenrode Business Universityeit Prof.dr. Jack AA van der Veen

"A fascinating book. It is a must-read for anyone who wants to use their supply chain to gain a financial edge"

Dr Harpal Singh

"The supply chain triangle has changed the way we translate the strategy of the company into targets for our different organizations. It makes the discussions less emotional, more fact based and increases the understanding of each other's goals."

Johan Heyman

"An excellent book in which Prof. Bram DeSmet illustrates how supply chain should be an integral and vital part in building and executing a business strategy. The clear concepts underpinned with good case studies trigger a lot of reflection and are very instrumental to help you in both the strategy exercise and the design of an effective supply chain."

Former CFO and Exec VP Bekaert (retired) Frank Vromant

"This book goes to the essence of high-performance supply chains. That is, launching strategies to meet customer expectations, and then through operational excellence and innovation, freeing cash for re-investment in projects to further improve performance. It's a virtuous circle."

Global SC ‘thought leader’ and Author Dr John Gattorna

"Despite all volatility and uncertainty getting the fundamentals of your supply strategy right is more important than ever before. The latest book of Dr. Desmet connects the ‚magic triangle' with consumer & customer, business and supply chain strategy in a unique and consistent way. Great read!"

Dr. Dirk Holbach

"This is a must read. Bram showed me the importance of making choices in order to come to a clear cut strategy which survives changing market conditions. Exercises & cases helped me to see the connection between the supply chain triangle, financial metrics, the different strategic options and how these could lead to streamlined kpi's and organizational models. It offers an ideal framework for management teams."

Tom Hautekiet

"Supply Chains are becoming incredibly more strategic for most of the companies and their roles have transformed to be crucial in value generation by providing customers with the right service, quality and experience. In his book Bram captures the essence of how strategy, finance and supply chain should interconnect to drive more value through strategy-driven supply chains. A warmly recommended read!"

Mourad Tamoud

"The times when supply chain management could be considered as merely an operational activity focused on cost-reduction are long gone. By introducing the supply chain triangle, thought-leader Bram DeSmet provided supply chain professionals a highly relevant framework to (re)think their contribution. In this inspiring and highly practical book he takes it one step further by addressing the indispensable next question: how can we make our supply chain a true strategic asset?"

Nyenrode Business Universiteit Prof.dr. Jack AA van der Veen

"This book goes to the essence of high-performance supply chains. That is, launching strategies to meet customer expectations, and then through operational excellence and innovation, freeing cash for re-investment in projects to further improve performance. It's a virtuous circle."

Global SC ‘thought leader’ and Author Dr John Gattorna